CU Health Plan - Exclusive

CU Health Plan - Exclusive is a limited network plan administered by Anthem Blue Cross Blue Shield. All members must select a primary care physician (PCP) who will direct their health care as appropriate. Referrals are required for most specialist visits. This plan offers in-network coverage only, except in cases of emergency.

CU Health Plan - Kaiser

CU Health Plan - Kaiser is an exclusive provider organization plan that offers coordinated care throughout the Kaiser network of providers. Referrals are required for most specialist visits. This plan does require that you live within a designated zip code area. The University does not participate in the Kaiser Northern Network. This plan offers in-network coverage only, except in cases of emergency.

CU Health Plan - High Deductible

CU Health Plan - High Deductible is an HSA-qualified, consumer-directed health plan administered by Anthem Blue Cross Blue Shield, which offers a national network of providers. Members do not have to select a primary care physician (PCP) and may refer themselves to doctors of their choice, including specialists. This plan provides coverage both in network and out of network. Preventive care is covered at 100 percent in most cases and is not subject to the plan deductible.

CU Health Plan - Access Network (CURRENT ENROLLEES ONLY)

CU Health Plan - Access Network is limited to those employees who are already enrolled in this plan and continue to live within the designated zip code area. This plan is an open-access HMO, meaning you do not need to get a referral to seek specialty care. This plan offers in-network coverage only, except in cases of emergency.

Delta Dental PPO

Using this plan, you may see any dentist. Reimbursement levels are typically higher when you use a dentist on the Delta Preferred Provider Option (PPO) list. Once you meet the plan deductible, you'll be responsible for a percentage of your covered care costs (aka, coinsurance).

Basic Term Life and Accidental Death and Dismemberment Life

The university provides an employer-paid, basic term life insurance plan, which includes an AD&D benefit in the same amount.

The Basic Term Life Plan pays a benefit to your beneficiaries if you die while covered under the policy. The AD&D provision provides a benefit of up to—and in addition to—the Basic Term Life amount if you die as a result of an accident. Benefits are payable to you (the covered member) for losses other than life, including loss of hand, foot, sight, speech, hearing, paralysis or certain other losses caused by an accident. The policy has neither a cash value nor provisions for loans.

Eligible faculty, officers and university staff are automatically enrolled in a $57,000 basic term life and $57,000 AD&D insurance policy.

Optional Term Life and Accidental Death and Dismemberment Life Insurance

The university provides eligible employees, spouses/same-gender domestic partners and dependents an opportunity to purchase additional life insurance through the Optional Term Life and AD&D Insurance Plan. The policy has neither a cash value nor provisions for loans.

Plan features:

Employees pay their premiums through monthly payroll deductions.

The plan offers a rate discount for non-tobacco users (no use of tobacco products within the past 12 months).

If you are enrolling in optional life insurance for yourself and/or your spouse/same-gender domestic partner and are asking for more than the guaranteed issue (GI) amount, you must submit a medical history statement as evidence of insurability (EOI).

If the employee and spouse/same-gender domestic partner are university employees,the combined total of both member's optional term life plans may not exceed $500,000.

Employee

Spouse/Same-Gender Domestic Partner

Dependent Children

Initial Eligibility

May enroll in increments of $1,000 up to whichever of the following is less:

The guaranteed issue (GI) amount of three times the employee's annual salary; or

The plan maximum of $500,000

May enroll up to the GI amount of $50,000, not to exceed the amount of the employee's coverage

May enroll in either a $5,000 or $10,000 coverage amount, as long as it does not exceed the amount of the employee's coverage

Certain Qualifying Life Event & Open Enrollment

May increase by a maximum of $10,000 (not to exceed the GI amount) without evidence of insurability (EOI)

Additional amounts (up to the plan maximum of $500,000) require submission of the Medical History Statement and approval of EOI.

May increase by a maximum of $10,000 (not to exceed the GI amount) without evidence of insurability (EOI)

Additional amounts (up to the plan maximum of $500,000) require submission of the Medical History Statement and approval of EOI.

Coverage amount cannot exceed the amount of the employee's coverage.

May enroll in $5,000 or $10,000 option

Coverage amount cannot exceed the amount of the employee's coverage.

Other

May decrease or revoke election any time during the plan year

May decrease or revoke election any time during the plan year

May revoke election any time during the plan year

Voluntary Accidental Death and Dismemberment (AD&D) Insurance

The university provides eligible employees, spouses/same-gender domestic partners and dependents an opportunity to purchase a separate, elective AD&D insurance plan. AD&D insurance provides a benefit in the event of an insured member's covered loss of life, hand, foot, sight, speech, hearing, paralysis or certain other losses caused by an accident.

Employees pay their premiums through monthly payroll deductions.

Employee

Spouse/Same-Gender Domestic Partner

Dependent Children

Initial Eligibility

May enroll in increments of $10,000 up to whichever of the following is less:

10 times employee's annual salary; or

$250,000

May enroll in increments of $10,000 for an amount less than or equal to the amount of the employee's coverage

May enroll in $5,000 as long as the employee is enrolled

Qualifying Life Event And Open Enrollment

May enroll in increments of $10,000 up to whichever of the following is less:

10 times employee's annual salary; or

$250,000

May enroll in increments of $10,000 for an amount less than or equal to the amount of the employee's coverage

May enroll in $5,000 as long as the employee is enrolled

Other

May decrease or revoke election any time during the plan year

May decrease or revoke election any time during the plan year

May revoke election any time during the plan year

PERA Optional Life Insurance Plan

administered by Unum
PERA offers an optional group, decreasing-term life insurance plan to its members. In addition, the plan provides accidental death and dismemberment (AD&D) benefits, life insurance coverage for spouses and eligible children, and an accelerated benefit option.

Plan features:

Employees must enroll through PERA.

Employees pay their premiums through monthly payroll deductions.

Beneficiaries

Primary beneficiaries receive the benefit in the event of your death. If you name more than one primary beneficiary, you must indicate the percentage assigned to each and ensure the total in this category equals 100 percent.

Contingent beneficiaries receive the benefit only if your primary beneficiaries are deceased. If naming more than one contingent beneficiary, please indicate the percentage assigned to each and ensure the total equals 100 percent.

For spouses/same-gender domestic partners, and dependent Optional Life/AD&D and Voluntary AD&D coverage, the beneficiary is automatically you, the university employee.

Changes to beneficiary designations require you to complete the Benefits Enrollment/Change Form. The effective date of beneficiary changes is the date you sign the form.

Imputed Income on Life Insurance

According to IRC regulations (IRC section 79), life insurance coverage in excess of $50,000 may be subject to federal taxes based on a graduated rate table provided by the IRS. The amount of life insurance coverage above $50,000 is multiplied by a premium rate based on an employee's age at the end of the calendar year, which results in a monthly amount of imputed income.

This imputed income, reduced by the amount the employee paid toward the insurance, is taxable as a benefit and is, therefore, added to the employee's applicable wage base for federal income tax, Social Security tax and Medicare tax purposes.

Imputed income will be calculated on the employee's life plans (basic and optional) and on their spouse/same-gender domestic partner's optional life insurance, as applicable. The $50,000 exclusion for employees does not apply to their spouse's/same-gender domestic partner's optional life insurance.

Although the taxable portion of the group life insurance benefit is subject to federal income tax and is recorded on an employee's W-2 annually, the university is not required to withhold income tax from an employee's paycheck. The university is required to withhold Social Security and Medicare taxes on the life insurance benefit each month.

For most employees, this usually equates to a very small sum of money.

Termination of Coverage

If you are enrolled in one or more of the term life insurance plans and you lose eligibility, contact Employee Services immediately for information on your rights for conversion or portability.

If you're unable to work due to illness or injury, short- and long-term disability are salary replacement benefits. Enrollment in long-term disability is automatic. The University pays 100% of the long-term disability premium.

If enrolling within the first 31 days of initial eligibility, the late-enrollment penalty (LEP) does not apply.

If enrolling during Open Enrollment or certain qualifying events, LEP does apply.

Enrollment is automatic following one year of employment in a benefits-eligible position.

Late-Enrollment Penalty (LEP)

If you file a claim for anything other than an accidental injury during the first 12 months after your coverage becomes effective, short-term disability benefits will be subject to the lesser benefit amount for the first 60 days of disability.

N/A

Effective Date

Open Enrollment: July 1

OR

Initial eligibility, qualifying event and salary increase: first of the month following the event

First day of the month following one year of benefits-eligible employment

Benefit Claim Process

Contact your campus HR department and Employee Services within 30 days of disability.

These are three separate options under the Internal Revenue Code Section 125, which may be elected separately or in combination to help lower your taxable income. Because cafeteria plans provide tax advantages, the federal government imposes strict rules and limitations on enrolling, making changes or using these accounts. Consult your tax adviser or the IRS for guidance on how cafeteria plans might affect your personal tax status. Please use careful consideration in making your decision whether to enroll or not, and if you do, how much you should contribute.

Cafeteria Plan Options

Premium-Only Plan (POP)

The POP allows your monthly medical and dental benefits costs to be deducted from your pay before taxes are calculated.

Once you elect to participate in the POP, your enrollment will continue from plan year to plan year. Changes are allowed only at Open Enrollment.

Employee Services requires a Same-Gender Domestic Partner (SGDP) Tax Certification of Dependency for Tax Treatment of Medical Benefits for SGDPs and their dependents to deduct the relevant portions of their premium, pre-tax.

If you have dependents enrolled in university benefits who do not qualify as federal tax dependents for health-coverage purposes, their premiums are not eligible for the POP, and you may incur imputed income.

Dependent Care Flexible Spending Account (DCFSA)

This account allows you to pay for the cost of caring for your federal tax dependents so you (and your spouse, if you are married) can work, look for work or attend school full time.

This is NOT for your dependent spouse's and/or children's health care expenses.

You may contribute pre-tax, a minimum of $10 per month and up to $5,000 per calendar year ($2,500 if you are married and file your taxes separately). Note: Your payroll deduction will be calculated as your annual election divided by the number of remaining pay periods in the plan year (July-June).

Your contribution is for the plan year. For tax purposes, you are responsible for keeping track of your total calendar-year contributions, including any contributions made by your spouse.

Federal tax dependents, for the DCFSA purposes, include any qualifying child or relative younger than 13, your spouse and older dependents who are mentally or physically incapable of self-care and who live in your home at least eight hours each day. If you are divorced, the dependent must be your son or daughter for whom you have more than 50 percent physical custody.

Qualifying providers can provide care in your home or outside your home. Care provided outside your home and in a facility caring for more than five individuals must be licensed by the state.

Expenses may not be paid to your spouse, to children younger than 19 at the end of the year in which the expenses are incurred, or to any other individuals for whom you or your spouse are entitled to a personal tax exemption as a dependent.

Dependent day care expenses are incurred when the day care is provided. This means you must receive the dependent day care services before you file a claim for those services.

You must re-elect the DCFSA every plan year to continue participation.

Please refer to the ASI website at www.asiflex.com[33] to verify eligible expenses.

Effective date is the 1st day of the month following the date Employee Services receives your form.

Your final contribution will be June 30.

You will be allowed to incur expenses through Sept. 15.

You must file claims for reimbursement by Nov. 15.

It is very important to carefully plan your election amount as any contributions left in the account will be forfeited.

Consider the effects cafeteria plans may have on your taxes and PERA Highest Average Salary:

Cafeteria plan dollars are deducted from your pay pre-tax, meaning before federal, state, FICA (Social Security[34]), and Medicare[35] taxes are paid. Your taxable income is reduced by the amount you contribute.

Participating in cafeteria plans reduces the salary on which annual contributions to Social Security are calculated, which may result in a reduction of the Social Security benefits received at retirement.

Reimbursements from your DCFSA may reduce or eliminate dependent care tax credits on your federal income tax return. For most people, DCFSA reimbursements provide a greater benefit, but everyone's tax situation is different, so it is best to compare tax savings on an individual basis.

Participating in cafeteria plans reduces the total contribution (both yours and the university's) to PERA[36].

Your PERA retirement annuity or disability retirement is based on your PERA Highest Average Salary (HAS) calculation. Since cafeteria plans reduce the salary on which PERA calculates benefits, your PERA retirement benefits may be reduced.

You may want to carefully consider whether to participate in cafeteria plans during your HAS years (typically your last years of employment).

Health Care Flexible Spending Account (HCFSA)

The HCFSA allows you to cover certain eligible out-of-pocket medical, dental and vision expenses not covered or reimbursed by insurance and incurred by you or your federal tax dependents.

You may contribute pre-tax, a minimum of $10 per month up to $2500 per calendar year. Your payroll deduction will be calculated as your annual election divided by the number of remaining pay periods in the plan year (July-June).

Your contribution is for the plan year. However, for tax purposes, you are responsible for keeping track of your total calendar-year contributions.

Enrollment in a medical and/or dental plan is not required for you and/or your federal tax dependents to participate in the HCFSA.

Over-the-counter (OTC) medications and drugs may be covered, but they must be used to treat an existing or imminent medical condition. You cannot claim OTC items used for general good health. Additional documentation may be required when you file a claim.

You cannot make contributions to both an HCFSA and a Health Savings Account (HSA). You may not use this account to reimburse insurance premiums.

Expenses qualify for the HCFSA when they are incurred, not when they are paid.

You must re-elect the HCFSA every plan year to continue participation.

Effective date is the 1st day of the month following the date Employee Services receives your form.

Your final contribution will be June 30.

You will be allowed to incur expenses through Sept. 15.

You must file claims for reimbursement by Nov. 15.

It is very important to carefully plan your election amount as any contributions left in the account will be forfeited.

Consider the effects cafeteria plans may have on your taxes and PERA Highest Average Salary:

Cafeteria plan dollars are deducted from your pay pre-tax, meaning before federal, state, FICA (Social Security[34]), and Medicare[37] taxes are paid. Your taxable income is reduced by the amount you contribute.

Participating in cafeteria plans reduces the salary on which annual contributions to Social Security are calculated, which may result in a reduction of the Social Security benefits received at retirement.

Reimbursements from your DCFSA may reduce or eliminate dependent care tax credits on your federal income tax return. For most people, DCFSA reimbursements provide a greater benefit, but everyone's tax situation is different, so it is best to compare tax savings on an individual basis.

Participating in cafeteria plans reduces the total contribution (both yours and the university's) to PERA[38].

Your PERA retirement annuity or disability retirement is based on your PERA Highest Average Salary (HAS) calculation. Since cafeteria plans reduce the salary on which PERA calculates benefits, your PERA retirement benefits may be reduced.

You may want to carefully consider whether to participate in cafeteria plans during your HAS years (typically your last years of employment).

HCFSA/HSA Comparison Chart

Use this chart[39] to compare and contrast a Health Savings Account (HSA) and a Health Care Flexible Spending Account (HCFSA). Both are tax-advantaged plans that can be used to pay for qualified health care expenses.*

Health Savings Accounts (HSA) (Irc Sec. 223)

Health Care Flexible Spending Account (HCFSA) (IRC sec. 125)

What is the purpose of having one of these accounts?

to pay for unreimbursed qualified current health care expenses, and save for future health care expenses

to reimburse for qualified health care expenses.

Is it available to university employees?

Yes; you must be enrolled in a High Deductible Health Plan (HDHP) to be eligible. The university's CU Health Plan - High Deductible and the state's UnitedHealthcare HDHP with HSA Plan and Kaiser HSA plans (state plans for classified staff with appointments of less than 50 percent) are all qualified HDHPs.

Yes; participation in a university or state medical plan is not required. Must re-enroll each open enrollment to participate.

Who is eligible to contribute?

employers, employees, individuals covered by a qualified HDHP (Spouses and children can contribute as well.)

employees

Who owns the account?

individual/employee

university

What are the maximum contribution amounts for the 2014 tax year?

$3,300 individual coverage/$6,550 family coverage Individuals age 55 or older can make "catch-up" contributions of $1,000.

$2,500

Is a pre-tax contribution allowed?

Yes; however, the university does NOT currently sponsor an HSA, so employees CANNOT make pre- tax contributions. Employees can set up payroll deposits to their HSA account by completing the Direct Deposit Authorization Form[40]. The tax advantage will be gained when you file your income taxes.

yes

Can contributions be used to pay for health care premiums?

no (except COBRA premium, or while receiving unemployment compensation and long-term care premiums)

no

Can the unused contribution be rolled over?

yes

No; all unused contributions are forfeited.

Are account contributions portable?

yes

no

Are there any penalties for withdrawal before age 65?

yes: 10 percent if not paying for qualified health care expenses

N/A

Are there IRS rules to remember?

The recapture rule will apply if you become ineligible for contributions during the testing period. Check with your financial institution or tax adviser. FSA, HRA, IRA rollover privilege: Check with your tax adviser.

Yes—as long as he/she is enrolled in an eligible HDHP and not enrolled in Medicare

no

Can I submit claims for expenses not covered by the HDHP (e.g., vision, dental, long-term care?).

yes

yes, with some exceptions (e.g., long-term care premiums)

Can PERA participants participate if within 3-5 years of retirement

yes; the Health Savings Account does not affect your Highest Average Salary calculation.

Yes; however, participation will affect your Highest Average Savings calculation.

Do I have to make contributions to the account throughout the year, or can I make a lump sum contribution?

Contributions can be made as late as April 15 of the following year; however, you cannot be reimbursed for qualified health care expenses until your account is funded.

Your total annual allocation is divided by the number of pay periods remaining in the plan year.

If I have immediate eligible expenses, can I be reimbursed up to my annual allocated amount?

No; you will be reimbursed up to your current account balance and must resubmit remaining expenses as your HSA contributions accumulate.

Yes; total plan-year contributions are available the first day of the plan year.

*If there is any difference between this comparison chart and any applicable federal and state laws or Employee Services' policies and procedures, the applicable federal and state laws or Employee Services policies and procedures will govern.

Mandatory Plans

The University of Colorado offers two mandatory pension/savings plans to eligible employees. Each plan has distinct eligibility requirements.

University of Colorado 401(a) Retirement Plan

Public Employees' Retirement Association (PERA)

PERA Choice

Members appointed into a position that is eligible for the University of Colorado 401(a) Optional Retirement Plan and/or the University of Colorado 403(b) plans (collectively, the University Pension/Savings Plans) are required to make a one-time, irrevocable election to either participate in the PERA or the University Pension/Savings Plans.

Except in certain cases where you are no longer a PERA member upon being rehired by the university, this election will remain in effect throughout your career with the University of Colorado as long as you are employed or rehired in a faculty, officer or university staff appointment. If you elect to participate in the PERA, you may still participate in the university's voluntary 403(b) plan.

Enrollment Management will send you an election form with your deadline for election clearly stated. If your election form is not received by the deadline shown, you will be deemed to have irrevocably elected to participate with the PERA.

University of Colorado 401(a) Retirement Plan

The CU 401(a) Retirement Plan is a qualified, defined contribution plan under section 401(a) of the Internal Revenue Code.

Individual accounts are set up for participants and benefits are based on the contributions credited to these accounts, plus any investment earnings on the money in the account. Upon retirement, the member's account is used to provide retirement income.

Investment risk and investment rewards are assumed by each individual/employee/retiree and not by the sponsor/employer.

Public Employees Retirement Association (PERA)

A defined benefit plan is a pension plan, which promises a monthly benefit upon retirement that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending on investment returns.

PERA members will not pay into Social Security but will still pay Medicare tax.

Faculty who are existing PERA members and appointed into a position that is eligible for the University of Colorado 401(a) Optional Retirement Plan and/or the University of Colorado 403(b) plans (collectively, the University Retirement Plans) are required to make a one-time, irrevocable election to either participate in PERA or the University Retirement Plans.

Employee Services will send you an election form, with your deadline for election clearly stated. If your election form is not received by the deadline shown, you will be deemed to have irrevocably elected to participate with PERA.

Except in certain cases where you are no longer a PERA member upon being rehired by the university, this election will remain in effect throughout your career with the University of Colorado as long as you are employed or rehired in a faculty, officer, or university staff appointment.

If you elect to participate in PERA, you may still participate in the university's voluntary 403(b) plan.

Voluntary Retirement Savings Plans

The University of Colorado has three voluntary savings plans available to most employees.

Retirement Pension/Savings Plan Distributions

The availability of distribution/withdrawals under each of the mandatory and voluntary Pension/Savings plan accounts may differ depending on the plan(s) you are enrolled in and your employment status with the University. Review the Distribution Fact Sheet[54]for details.